Business Proposal for WEIR Valves and Controls UK

K.O.N.G. Business Consultants

Kishan Patel Obie Oduah Duy Tu Nguyen Greta Luksyte

Table of contents

1. 2. 3. 4. 5. 6. 7. 8.

Abstract Introduction Aim Objectives Methods Results Discussion Timescale/Gantt Chart

1. Abstract 2. Introduction

In the US and many other countries coal is the primary fuel for generation of power due to consideration of energy independence and greater stability of price and the lower cost of coal. Compared to natural gas coal has become the preferred choice for new base load power generation. In 2008 according to Hitachi statistics indicated that in Japan petroleum makes up only 12% of power usage, while LNG makes up 28% and coal 25%. The use of coal-fired power generation is expected to increase with a long term future and it is also estimated that coal mining will continue for at least another century. The use of coal for power generation poses a unique set of challenges although it is plentiful and available at low cost, notably in the US, China and India, on the other hand traditional methods of coal combustion emit pollutants and CO2 at high levels relative to other generation options. In order to maintain coal as a generation option in the 21 century will require methods for addressing these environmental issues. In effect to solve this problem Hitachi created supercritical and ultra-supercritical pressure coal fired power generation technologies which are expected to contribute to the reduction of CO2 emissions by achieving more efficient coal-fired power generation. This approach has related to decrease / reduction of CO2 emissions by 75% in ultra-supercritical pressure power generation, compared with the current sub critical pressure power generation. Furthermore in Japan, it has been proven that coal fired power generation operates with a total efficiency rate of 40% or more making it the highest rate in world this is due to the recent widespread utilization of supercritical and ultra-critical pressure power generation. Supercritical and ultra-supercritical power plants operates above the critical point of water, at which there is no difference between water gas and liquid water resulting to higher efficiencies above 45%. Supercritical and ultrasupercritical power plants requires less coal per mega -watt-hour which leads to lower emissions, higher efficiency and lower fuel costs per megawatt. Thus the increase in the use of coal for generation of power and how to minimise the CO2 emissions and other materials which are harmful to the environment has brought about the market for the equipments use in building the super critical and ultra-super critical technology. This will bring about the rationale for this research proposal and what the research will aim to achieve.

3. Aim 4. Objectives

5. Methods Our consultancy group will be using both secondary and the primary data methods in conducting research for the Weir Valves and Controls UK. Secondary data is information that has been previously gathered. There are two basic sources we will be using of secondary data: data available within organization which also could be called internal data and information available from published and electronic sources originating outside the organization called external data. Our research will be focused on the secondary data since we need to research different markets globally and it would be expensive and impossible to achieve this by collecting only through primary data. In Order to support the research from the secondary data our company will be collecting primary data based on a combination of qualitative and quantitative data. This collection will provide some key aspects of the organization, weaknesses, problems already experienced in this business from people who work there as well as quantitative information which will provide statistical information. Collected primary and secondary data will be analyzed and edited. Later, it will be tabulated using wide variety of statistical and non-statistical techniques before presentation and the final proposal. For the better understanding our company will provide various graphs and tables to show the research findings. The research flow is shown in the last section of the proposal in order to give a rough timescale of our work. 6. Results Market size for supercritical and ultra-supercritical valves o Production output, consumption, value? o What is main market? Competitiveness in the market o Indicates competitor: Who Market share price profit Geographic location of competitor. o Emerging competitor o Substitute for product Potential end-user: o Who: list of companies, countries using those products. Most importing countries

Customer needs and demand: through the surveys, who are the customer, why they needs, level of need, gap between need and demand, why need but do not buy (reasons: price, quality..) Routes to market: o Understanding individual customer o Differences of customers o Different routes, what is the advantages and disadvantages of each route, risk and return

7. Discussion According to problem rationale and results we have, some discussions will be considered. Does Weir have to change in resource to serve the main market? (Build manufactures near market? invest more for emerging market to gain market share?) The criteria from customers in order for those markets: do they need really high quality with high price or acceptable quality with good price? => How to reduce the cost of products: Does Weir need to relocate manufacture to countries having lower labour cost, does it affect quality of product? Is the price competitive comparing to competitor? Whether the price is too high? What are the reasons for reducing price of competitor? Is price suitable for new market? Does Weir have to do like competitor or make the different way? Does Weir need to improve after sale service? Whether the price is low? How to keep the low price like that? What are the reasons could change the price in the future? To reach potential end-user, understanding the gap between need and demand, if exist how to fill that gap , whether Weir need to create new products with focus on new customer which satisfy the individual need from new market or just what products Weir has. Is the channel to those customers enough? Should Weir create direct channel, agent to those customers? Understanding the gap of technology between new market and existing market in order to figure out and provide the suitable timescale of accessing to those markets. Comparing quality the projected installed base of these technologies in the next 20 years between the information already had and the one estimating from the result of this project. What are the differences?

9. Timescale/Gantt Chart

Consultancy Presentaion Primary Secondary Project Proposal Meeting with 20.6.12 10.7.12 30.7.12 19.8.12 8.9.12 28.9.12

Meeting with the supervisor once a week Meeting with the client approximately every 3 weeks